12 December 2025
IMPORTANT INFORMATION
This PDS has been prepared by Tiger Brokers (AU) Pty Limited (“TBAU”) ABN 12 007 268 386, AFSL No. 300767. In this PDS when we use terms ‘we’, ‘us’ or ‘our’, the reference is to TBAU.
The information in this Product Disclosure Statement (PDS) does not take into account your personal objectives, financial situation and needs. This PDS is a general summary of significant information, designed to assist you in deciding whether the purchasing financial products using the standard margin lending facility is appropriate for your needs. It is not a substitute for independent professional advice. If you require any legal, taxation or other advice we recommend that you seek such advice tailored to your personal situation before opening the margin account and apply for the margin loan
This PDS is prepared and intended for clients who are natural persons. However, non-natural person clients are strongly recommended to read this PDS as well, on the basis that the margin loans provided to other entities person have the same features and are subject to the same terms as set out in this PDS. Clients should read this PDS in conjunction with the margin lending terms and conditions, margin lending FAQ and the other disclosure documents on our website.
Although the information in this PDS is up to date as at the date of publication, it is subject to change from time to time. The latest version of this PDS is available on our website at https://www.itiger.com/au/info/PDS.
This PDS is an important document and is a summary of significant information. This PDS contains a number of references to other important information, each of which forms part of the disclosure under this document. If you have any questions on its contents you should contact us. You should retain a copy of this PDS for your records.
If you received this document electronically we will provide a paper copy free on request.
1. About Tiger Brokers (AU) Pty Limited and the Tiger Brokers standard margin lending facility
TBAU is the issuer of the standard margin lending facility offered under this PDS.
TBAU holds an Australian financial services license, number 300767, which authorises TBAU to issue and deal in standard margin lending facilities to retail and wholesale clients.
A TBAU Margin Loan allows you to borrow money to invest in shares and managed funds, using existing funds or your portfolio at TBAU as security. This helps you to increase the size and diversity of your investment portfolio. Borrowing under a TBAU Margin Loan can result in higher returns, however it can also result in larger losses if the value of your investments fall. On taking out a TBAU Margin Loan all assets in your account with TBAU will become security for your TBAU Margin Loan. Unlike a margin loan at other providers, the TBAU Margin Loan functions on a consolidated basis meaning that your collateral and outstanding loan balance is calculated across all your outstanding margin loans with TBAU and all collateral held with TBAU.
You should monitor your portfolio to ensure that you are aware of any changes to the terms of your TBAU Margin Loan and you can take any action required to prevent losses in relation to your portfolio.
You may be required at short notice to transfer additional funds or securities or sell some of the investments for which the TBAU Margin Loan is made. Additionally, TBAU as the provider of the TBAU Margin Loan has the right in certain circumstances to sell all, or part of, your portfolio and is not required to provide notice of its intention to sell, except as described in paragraph 4.
In some situations, the sale of your portfolio may not cover the costs of repayment of your margin loan. In these situations, your TBAU account will be suspended unless you repay your outstanding margin loan balance. If you have provided other assets as security for your margin loan, they may be sold to repay your margin loan.
2. Benefits of margin lending
A TBAU Margin Loan can provide you with the below key benefits:
· Potential for enhanced returns: by leveraging margin lending to increase your exposure, you may achieve higher returns when the value of your investments increase
· Improved diversification: access to additional funds enables you to broaden your investment portfolio. Where you use these additional funds to purchase a broader range of investments, this will reduce the impact of poor performance in any single eligible investment.
· Greater flexibility: you can borrow against your available cash and existing portfolio without liquidating investments and potentially triggering capital gains tax. This can make margin lending a tax-effective strategy, depending on your personal circumstances.
3. How does the TBAU Margin Loan work
Clients may submit an application for a TBAU Margin Loan together with a requested loan limit for assessment by TBAU. Approval is based upon you satisfying all relevant assessment criteria. The determination of the margin loan limit will take into account your financial capacity and source of funding among other factors, and the final approved limit (Approved Loan Limit) may be equal to or less than the amount originally requested.
The amount you can borrow depends on your Available Excess Equity (AEE). Your AEE is calculated as Equity with Loan Value (ELV) minus Initial Margin (IM). For this purpose:
· ELV equals the combined current market value of the securities and cash which you hold with TBAU, less any currently outstanding loan balance. The ELV only includes the value of securities on our Approved Securities List; and
· IM equals the sum of the initial margin required for each of your securities, calculated by multiplying the current value of each of your securities by the Initial Margin Percentage which TBAU has allocated to that security (IM%). The IM% effectively represents the "equity to value" ratio for that security. Other providers may quote loan to value ratios (LVRs). You can calculate the effective LVR based on the IM%, as follows:
IM% = 100% – LVR.
EXAMPLE: If we assign an IM% of 40% to a security, you would need to have at least 40% of the value of that security as equity and up to 60% of the value could be funded by a TBAU Margin Loan, assuming this is the only asset in your portfolio. This means that you could borrow up to $60,000 towards a purchase of $100,000 worth of those securities. Depending on your personal circumstances, we may set a lower Approved Loan Limit.
The total amount you can borrow at any time is the lesser of your AEE and your Approved Loan Limit.
A margin account permits the trading of various financial products, including, shares and ETFs. For a full list of eligible investments see the Acceptable Securities List, available at www.itiger.com/au.You are the beneficial owner of the securities which are used as collateral for your TBAU Margin Loan. As these will be used for security, they may be sold to meet a margin call or repay your margin loan. Details of your rights and obligations are set out in the TBAU Margin Loan Terms and Conditions. We recommend you carefully read the terms and conditions. For more information about the TBAU Margin Loan or if you want to obtain a copy of the TBAU Margin Loan Terms and Conditions, please visit our website or contact us.
The TBAU Margin Loan is only available where you are purchasing eligible investments for more than the available cash balance in your TBAU account. TBAU may amend eligibility for a TBAU Margin Loan or the requirements applying to the TBAU Margin Loan at any time.
For more information on how margin lending works, visit www.moneysmart.gov.au. You may also use the calculator on our website to assist you in determining your borrowing capacity for existing investments or other borrowing scenarios and to simulate your borrowing capacity assuming various changes to your existing investments.
The margin loan provided to retail clients are non-recourse in nature, meaning your liability to TBAU is limited to the secured property/collateral. Therefore you will not be liable for any outstanding debit/negative balance on your margin account, resulting from losses connected to your purchase of securities using TBAU's margin lending facility above the collateral you have provided. Due to this, TBAU does not conduct unsuitability assessments in accordance with Regulation 7.8.08B of the Corporations Regulations 2001 (Cth).
4. What is a Margin call?
A margin call occurs if your risk ratio (RR) exceeds 1.00.
Your RR is calculated as Maintenance Margin (MM) divided by ELV (see paragraph 3 for a description on how ELV is calculated).
For this purpose, MM is sum of the "maintenance margin" required for each of your securities, calculated by multiplying the current value of each of your securities by the maintenance margin percentage which TBAU has allocated to that security (MM%). As with IM%, the MM% effectively represents the "equity to value" ratio for that security. However, MM% will be lower than the IM%, to provide a buffer. MM% is used for ongoing margin call calculations, whereas IM% is used when calculating your AEE. This will provide a buffer between the amount you are able to borrow and the trigger for a margin call. As a result, a very small drop in value of your securities will not necessarily trigger a margin call.
RR increases as your ELV falls. An RR of less than 1.00 means your ELV exceeds your MM and you are not in margin call. An RR of 1.00 or more means your ELV is equal to or less than MM and you are in margin call and action is required immediately to prevent TBAU liquidating your collateral.
Another metric used to indicate when a margin call occurs is Excess Liquidity (EL). EL is calculated as ELV minus MM. When EL is less than zero, your RR will exceed 1.00 and your account will be in margin call.
A margin call can occur in a number of situations, including if:
· We increase the MM% assigned to a security.
· The market value of your portfolio falls.
· You don’t make required interest payments.
· We remove a security from the Acceptable Securities Lists.
EXAMPLE: A portfolio with a market value of $100,000 (with a combined IM% of 50% and MM% of 40%) a margin loan of $50,0000:
ELV = Market Value – Loan balance
= $100,000 - $50,000
= $50,000
IM = 50% of $100,000
= $50,000
MM = 40% of $100,000
= $40,000
AEE = ELV – IM= $50,000 - $50,000= 0
This means you would not be able to borrow any additional amounts, until the market value of your investments increase or your repay some of your loan.
RR = MM / ELV
= $40,000 / $50,000= 0.80
This means you would not be in margin call and would not be required to take any immediate action.
EL = ELV – MM
= $50,000 - $40,000
> $0
This confirms you would not be in margin call.
Following this, if the value of your collateral falls to $80,000:
ELV = $80,000 - $50,000
= $30,000
MM = 40% of 80,000
= 32,000
RR = MM / ELV
= $32,000 / $30,000 = 1.07
This means you would be in margin call.
EL = ELV – MM
= $30,000 - $32,000 < $0
This confirms you would be in margin call.
Upon receiving a margin call, clients must take action to avoid TBAU selling your collateral. This includes but not limited to:
· Closing or reducing positions
· Depositing additional cash into your account
· Transferring in additional eligible collateral
If a margin call occurs, we will notify you both via email and through the TBAU trading platform. You must be contactable at all times. Once a margin call occurs, TBAU may take steps to sell some or all of your collateral immediately. It may therefore not be possible for you to take any of the above steps prior to your collateral being sold.
We will also provide you with a RR warning if your RR reaches or exceeds 0.84. This warning will be provided by email and through the TBAU trading platform. While no action is required at this point and you are not in margin call, this indicates that your portfolio is in danger of reaching an RR of 1.00. This means you may wish to take action to prevent this occurring, including to avoid TBAU selling your collateral.
5. The risk of losing money
Some of the main risks that are associated with the TBAU Margin Loan include:
· Your portfolio value may decline to a point where it no longer sufficiently secures your margin loan. If this occurs and you have not deposited additional assets or reduced your leverage by closing positions, TBAU may be required to liquidate part or all of your portfolio, potentially at unfavourable prices, to restore acceptable gearing levels.
· TBAU changing the IM% of securities in your portfolio which result in your portfolio value no longer sufficiently securing your margin loan.
· We may remove securities from the Approved Securities List which may result your loan going into margin call
· interest rates may rise which may result in those rates being higher than investment returns
· tax laws may change which may have an adverse effect on your financial position
· Other TBAU services may be suspended until your TBAU Margin Loan is fully repaid
6. The costs
Interest
TBAU charges interest on any loan balance arising from your margin trading. Interest accrues daily and is calculated separately for each currency in which you hold an outstanding balance. For example, when financing margin trading of U.S. securities, you will borrow in USD, and the applicable USD interest rate will be charged on the outstanding USD balance. Similarly, when funding trades in Hong Kong securities, you will be borrowing in HKD, with interest charged at the prevailing HKD rate. Please note that the margin loan will always be in the same currency as the trade funded.
Interest is capitalised and added to the TBAU Margin Loan balance, increasing the outstanding loan balance denominated in the respective currency.
Interest rates are subject to change at any time. For the most current rates, please refer to the pricing page on our website.
Fees, costs and charges
There are no application fees, establishment fees or account keeping fees for a TBAU margin loan.
For the most current schedule of our trading fees, please refer to our Financial Services Guide and the pricing page on our website. Fees and charges are subject to change at any time.
Adviser remuneration
We do not make any payments to financial advisers in relation to the TBAU Margin Loan.
7. How to apply
Clients may apply for a margin account during the initial onboarding process or by upgrading an existing cash account at later stage. As part of the application, you will be required to provide additional information, such as your financial capacity, to assist TBAU to assess your eligibility. Before applying, you may wish to speak to an adviser to see if margin lending is suitable for you.
If you have any concerns or complaints about the financial service or financial products provided to you, you could let us know
By email: compliance@tigerbrokers.com.au
By Post: Suite 28.01, 25 Bligh Street Sydney, NSW 2000
By phone: +61 02 9169 6999
If you are not satisfied with how your complaint is responded to by TBAU or 30 days have elapsed, you may direct your concerns in writing to the Australian Financial Complaints Authority (“AFCA”) which is an independent dispute resolution scheme of which TBAU is a member. The dispute resolution scheme offered by AFCA is provided to you free of charge. AFCA details are:
Australian Financial Complaints Authority
GPO Box 3, Melbourne, Victoria 3001
Telephone: 1800 931 678
Internet: www.afca.org.au
Email: info@afca.org.au